7. Carbon Budget Accounting

Meeting global climate goals means that companies must operate within finite carbon budgets. We illustrate a hypothetical depletion schedule for Anglo American’s operational (Scope 1+2) emissions. Starting from a total allowable carbon budget of 50 Mt CO₂, the schedule shows projected emissions reductions toward net zero. The budget shrinks over time as emissions are released. If emissions reductions lag, the remaining budget falls more quickly, signalling the need for corrective action.